Business Proposal: Health Spa
The business proposed in this document is called the Health Spa which will be located in Canterbury, Kent due to the demand existent in the area and the economic environment in the South East currently. This spa will include a variety of services, products and experiences, which will be discussed under the Business Description and the tagline, will be â€œYour bodyâ€™s escape from the rigors of old life.â€ The spa industry has continued to thrive and grow despite the economic downturn, since people always look for ways to feel good and improve their appearance even when times are a little tougher. But the target age for this business is not for the ...view middle of the document...
The hope would be of potentially franchising the spa into other large cities in the future, eventually having locations throughout the United Kingdom. If franchising occurs, local general managers would be needed to oversee each spa and ensure things run smoothly, however this will be at a point much further down the road. In addition, if franchising occurs, the company will also need accounting and record keeping staff as well, to ensure all documents and records are kept appropriately which will result also in creating more jobs.
Industry and Market Analysis
The spa business in the United Kingdom has been and continues to be a growing industry in the, as many people are stressed, running on empty and are looking for soothing and natural ways to improve the way they feel and better their quality of life. In addition, many people are turning to spa treatments and products to slow down or smooth the aging process and improve their health through later years of life. According to new research undertaken by The Leisure Database Company in partnership with SPATEC, UK consumers make an estimated 6 million visits per annum to spas throughout Britain, equivalent to 10% of the UK population. The research estimated that there are 4,571 therapists employed across the 402 UK spas and around 6 million spa treatments are purchased per annum. The average annual rate of growth in the industry has been about 20% over the last 8-10 years, and one in four British people is estimated to have visited a spa at some point. (State of the UK Spa Report 2007) The spa industry will continue to grow despite the economic climate making it an excellent area to enter based on an analysis of the industry.
A number of spas currently exist in the area, some operating simply as day spas, others as med spas offering more medical based treatments, and some operating more as salons with nail and hair services. In addition, looking at the Health spas and resorts in Kent, there are roughly 24 spas operating in the Kent area currently (Canterbury â€“Ashford area) and closer to Canterbury only 4 spas are currently active. While this is a number of competitors in operation, the Canterbury area has a population of roughly 154,200 with an older population of over 64 years in number of 28,000 providing a large potential customer base. (District profile for Canterbury, 2012) If there are included the surrounding suburbs and other areas, this number is even larger, close to 1,730,000 people. (Office for National Statistics, 2011)
The spa industry will have a life cycle, just like any other product or service, which begins with the Introduction stage. During this time, the spa will need to stress its uniqueness compared to other spas competing for their business, showing how they are unique and how they can better provide the spa services the customer desires at the lowest prices. In addition, being new to the industry will cost money as advertising expenditures...